"Detroit, glad to be here for 4 more yrs," he said, via Twitter. "Thanks to our fans, friends and Ilitch family."
The 34-year-old native of Sverdlovsk, Russia, registered 15 goals and 34 assists for 49 points in 47 games with the Red Wings this past season.
In 779 career NHL regular-season games, all with Detroit, Datsyuk has accumulated 255 goals and 512 assists for 767 points.
Datsyuk was originally drafted by the Red Wings in the sixth-round (171st overall) of the 1998 NHL Entry Draft.
His annual salary cap hit will be $7.5 million.